General Mills Q4 sales decline 3% as company focuses on consumer value investments
General Mills reported lower sales and earnings in the fourth quarter and full fiscal year ended May 25, 2025, as the company continued investing in consumer value and brand support.
Fourth-quarter net sales declined 3% to $4.6 billion, driven by lower pound volume and unfavourable net price realization and mix. Organic net sales also fell 3%, including a two-point headwind from bad trade expense timing. Organic dollar volume was in line with the previous year.
Chairman and chief executive officer Jeff Harmening said investments made during the second half of fiscal 2025 helped improve volume and dollar share trends in the fourth quarter.
"The investments we made in the second half of fiscal 2025 to bring consumers more value worked as we expected, driving improved volume and dollar share trends in the fourth quarter," Harmening said. "Our Q4 financial results reflected these incremental investments and finished in line with our updated expectations."
Fourth-quarter earnings decline
Gross margin fell 340 basis points to 32.4% of net sales, primarily due to higher input costs, unfavourable mark-to-market effects, and unfavourable net price realization and mix. Adjusted gross margin declined 220 basis points to 32.7%.
Operating profit totalled $504 million, down 35% from the prior year. The decline was driven mainly by lower gross profit dollars and higher selling, general and administrative (SG&A) expenses, partially offset by lower restructuring, transformation, impairment and other exit costs.
Adjusted operating profit decreased 22% in constant currency to $622 million.
Net earnings attributable to General Mills were $294 million, down 47%, while diluted earnings per share fell 46% to $0.53. Adjusted diluted EPS was $0.74, down 27% in constant currency.
Full-year results
For fiscal 2025, General Mills reported net sales of $19.5 billion, down 2% from the previous year. The decrease was driven by lower dollar volume and unfavourable net price realization and mix. Organic net sales also declined 2%.
Gross margin decreased 30 basis points to 34.6% of net sales. The decline was primarily driven by input cost inflation, unfavourable net price realization and mix, and volume deleverage, partially offset by Holistic Margin Management (HMM) cost savings.
Operating profit totalled $3.3 billion, down 4%, while adjusted operating profit declined 7% in constant currency to $3.4 billion.
Net earnings attributable to General Mills fell 8% to $2.3 billion. Diluted earnings per share declined 5% to $4.10, while adjusted diluted EPS was $4.21, down 7% in constant currency.
Fiscal 2026 priorities
Looking ahead, Harmening said restoring volume-driven organic sales growth is the company's top priority for fiscal 2026.
The company plans to invest further in consumer value, product news, innovation and brand building. Harmening also highlighted Blue Buffalo's national launch into fresh pet food later in calendar 2025.
General Mills also plans to continue driving Holistic Margin Management cost savings and advance its global transformation initiative to unlock additional resources for growth.
"With a clear framework centred on remarkability and positive early returns from our Q4 investments, I'm confident our fiscal 2026 plans will put us on a path back to driving long-term growth in line with our shareholder return model," Harmening said.
Accelerate strategy continues
General Mills said it remains focused on its Accelerate strategy, which is designed to deliver sustainable, profitable growth and long-term shareholder returns. The strategy centers on four priorities: boldly building brands, relentlessly innovating, unleashing scale and standing for good.
The company said it is prioritizing its core markets, global platforms and local gem brands while continuing to reshape its portfolio through strategic acquisitions and divestitures.
General Mills noted that year-over-year comparisons were affected by the acquisition of the Edgard & Cooper pet food business in the fourth quarter of fiscal 2024, the acquisition of the North American Whitebridge Pet Brands business in the third quarter of fiscal 2025, and the divestiture of its Canada yogurt business in the third quarter of fiscal 2025.
